10 Tips To Increase Profits At Your Professional Firm

Small changes in strategically vital places can have huge results!

A major rule for financial success in your business is that you cannot wish your profits better.
You need specific strategies to guide your business-boosting activities.
And you need to be as conscientious in implementing them as you are for your clients.

These strategies are different to your normal day-to-day work methods.
They aim to slightly change how your usual operations work. Changes of only a few hundredths - in the right place - will increase your profits. And often, once started, they can be easily continued.

You have three basic levers to control: Costing, Pricing and Billing.

Here are ten tips to help you explore possible points of action. The more you can implement the better!

1) Make Your Marketing More Inviting
2) Be More Welcoming To New Enquiries
3) Encourage Clients To Return With New Work
4) Be More Helpful Where Possible
5) Reduce The Cost Of Gaining Clients

6) Reduce The Cost Of Brand Awareness
7) Invite Reviews Referrals & Recommendations
8) Reduce Wasted Time And Wasted Resources
9) Cut Money Management Costs
10) And Remember To Raise Your Prices

1) Make Your Marketing More Inviting

Some businesses put out informative marketing materials that do not excite and invite. Readers are better informed but not driven to action. This is wasteful!

It has been said that good adverts cost around the same as bad ones... So check the emotional aspect of invitation in your website, email campaigns, leaflets, adverts and so on. Work to make your marketing as inviting as possible.

2) Be More Welcoming To New Enquiries

Professionals usually meet their clients to discuss the issues and agree the Instruction. The pathway from enquiry to meeting is one critical aspect to monitor - is it as welcoming as possible? And the skills in encouraging potential clients to agree to Instruct is the other.

Most professionals have very little training in marketing, selling or administration. These are the essentials of this stage. Any form of help focussed here can have a dramatic effect. Aim to be as reassuring, convincing and accessible as possible.

3) Encourage Clients To Return With New Work

Returning clients bringing repeat business, or new business, form the most profitable type of client you can find. After the first time, gaining that extra business has next to no marketing costs.

It's a good idea to monitor the ratio of once-only and returning clients, and make plans to actively encourage every first-time client to return. After all – it's simpler for them too!

4) Be More Helpful Where Possible

The size of the transaction will usually influence the profit that you earn from it. Once you are in discussion with a client, all the marketing costs cease to impact the profits, so more help at reasonable prices will often result in more income.

Seek ways to provide offers to clients that help them more than their basic need without incurring undue costs.

Offer MORE!

5) Reduce The Cost Of Gaining Clients

If you divide your marketing costs by the number of new clients you gain, you get a bird's-eye view of the productivity of your marketing. You can refine the detail of this and examine your website's productivity, and even identify those marketing expenses that produce little or no return.

You can work to boost the cost-effectiveness of your marketing to attract more clients for the same budget, or make well-informed cuts to save money by identifying the ineffective channels.

6) Reduce The Cost Of Brand Awareness

Some marketing can be aimed more at boosting your firm's reputation than actively recruiting more enquiries. The rationale for this is that many clients may not need your services when they read your marketing, but may do later. So lodging in their memory for future needs is the aim.

This is an investment with a long pay-back period and is very difficult to monitor. It can be worthwhile switching much of this marketing to the next strategy.

7) Invite Reviews Referrals & Recommendations

Clients who come to you as the result of referrals from your satisfied customers are the cheapest to acquire. And they may also be the easiest to encourage to agreement because your client who encouraged them toward you has quietened many of their natural hesitations.

Developing referral systems and encouraging reviews and recommendations for your business can have an major impact on your results. And your stress levels will reduce as your morale improves. And your prices will be easier to increase too.

8) Reduce Wasted Time And Wasted Resources

Businesses of all types can get into habits that are less and less useful as time goes on. These may result in time being wasted, resources being wasted and mental energy being wasted. Very often breaking the habit has little impact on client satisfaction – in fact it my be staff who feel most discomfort.

Encourage a waste-busting suggestions scheme: managers are often not aware of the opportunities as they exist at day-to-day level, not in statistics or policies. Staff can make a bigger difference.

9) Cut Money Management Costs

This is the cost of bank accounts, direct debits, invoicing, chasing up debts, lost interest and lost opportunities, and writing off bad debts. These may feel less attractive than bringing in new income, but can be more effective in raising profitability.

Financial control is more than credit control. Every pound you save is worth many times more than a pound of income. Good business practice keeps a constant eye on these too-easily overlooked costs.

10) And Remember To Raise Your Prices

Many people in business are very wary of putting up their prices, as they are convinced that this is a make or break factor in attracting and keeping clients. But the proven fact is that you can raise your prices by 5% or even 10% without worrying clients. Explaining Your Prices – to ensure clients understand the great value-for-money you provide – is a key step in your Client Attracting Pathway.

Keep the value of your products and services high for the clients you want and keep your staff friendly and helpful, and you will find that a small increase in your overall prices does not drive customers away.

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